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V:
Value added tax:
Value Added Tax. A consumption tax that is equal to the aggregate value added to the product at each stage of production.
Value Date:
The maturity date of the currency for settlement, usually two business days (one day for Canada) after the trade has occurred.
Value Spot:
Normally settlement for two working days from the date the contract is entered into. Value Today Transaction executed for same day settlement; sometimes also referred to as "cash transaction."
Vanilla:
A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
Variation Margin:
Additional margin required to bring an account up to the required level due to market fluctuations.
VAT:
value added tax
A consumption tax that is equal to the aggregate value added to the product at each stage of production.
Vega:
Expresses the price change of an option for a one per cent change in the implied volatility.
Velocity of Money:
The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period.
Victoria Day:
(in Canada) the first Monday preceding May 25, observed as a national holiday.
Visible Trade Balance - UK:
The difference between imports and exports of goods. Visible Trade differentiates itself from Trade Balance because it does not record intangibles like services, only reporting on physical goods. Because Britain's economy is highly trade driven, Visible Trade data can give critical insight into developments in the economy and into foreign exchange rates.
VIX:
The Chicago Board Options Exchange Volatility Index
VOL - Volatility:
Statistical measure of the change in price of a financial currency pair over a given time period.
Volatility:
A measure of the amount by which an asset price is expected to fluctuate over a given period. Normally measured by the annual standard deviation of daily price changes (historic). Can be implied from futures pricing, implied volatility.
Volatility - VOL:
Statistical measure of the change in price of a financial currency pair over a given time period.
Volatility Swap:
A forward contract whose underlying is the volatility of a given product.
This is a pure volatility instrument allowing investors to speculate solely upon the movement of a stock's volatility without the influence of its price. Thus, just like investors trying to speculate on the prices of stocks, by using this instrument investors are able to speculate on how volatile the stock will be.
Vostro Account:
Local currency account maintained by a local bank for a foreign (correspondent) bank. For the foreign bank it is a nostro account.
Voting Stock:
Common stock (ordinary shares) the ownership of which gives an entity right to vote in the issuing firm's annual general meeting (AGM). Opposite of non-voting stock. Also called voting shares.